Lifelong learning, professional mobility and efficiency wages in the Labour Market

The modern dynamically developing society imposes new demands on higher abilities and efforts of employees. This determines the points of contact between the economic interests of workers and employers. Companies are maximizing their profits, and workers are maximizing their individual utilities. The clash of these goals is effectively regulated by the market mechanism based on the formation of an efficiency wages. Making decisions about the amount of wages in terms of the absolute impossibility of monitoring the activities and results of workers' operations should be carried out on the principles of the efficiency wages theories. If an employee has a spectrum of competencies in several professions, his effective wages should be taken into consideration, otherwise he may go to another company which offers a greater salary based on the whole range of his competence. In terms of occupational mobility, the company should be fully informed about the professional competence of its employees and should build up an individual remuneration system taking into account the full range of his competence. The main purpose of the author's research is the formation of occupational mobility's economic mechanism on the basis of modeling decisions on the effective wage. Formation of an effective wage by a representative firm should consider all employee's abilities to maintain his efforts on high-level and eliminate shirking. The growth of the current employee's salary must always take into account its amount in the same occupational group at other enterprises and wage in that occupational group to which the worker can escape. If the company sets effective wages for its employees, the labor of these workers will also be effective. The results of the survey will be useful to economists of HR departments for establishing effective system of staff remuneration.

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